Why invest in Croatia?

Buying property in Croatia is currently an extremely good investment. The country still has a price level far below that of the other European Mediterranean states. Over the last few years, Croatia has become a very popular holiday destination - a trend that is increasing ever year. The purchase of property is therefore set to be a very sound investment.

In Croatia, and more particularly along the coast and its outlying islands, there are very many opportunities to realise your dreams of sunshine and beach. Proximity to the sea, beaches and small picturesque fishing villages enable you to experience the dream of the Mediterranean as it once was. You can find houses with panoramic sea views and within walking distance of the beach, or in the middle of a fishing village. The Croatian coast is still as it was hundreds of years ago. As in other countries, proximity to the sea is a central factor in property prices, but the general price level is still low.

The Croatian authorities have decided that the country is not to become a new "Spain", with excessive development. Many Croatian towns are to be found on UNESCO's heritage list, which regulates permitted development. No large apartment blocks or terraces, such as we find in Spain, will be built, nor is building permitted adjacent to the beach. There is already an apparent tendency for investors who previously have looked towards Spain and France to look towards the Adriatic coast. Property prices in Croatia are expected to rise by more than 10% a year.


About buying and selling property in Croatia

Citizens from EU can buy and sell property in the same way as Croatian citizens. There is only one difference - Citizens from EU must wait longer before receiving the deeds to the property. The waiting time can be up to 18 months. Purchase of a previously-occupied property is subject to 5% VAT, whilst a newly-built property is subject to 22% VAT. In both cases, the tax is included in the purchase price. When deeds are exchanged, 5% of the purchase price is payable in stamp duty. These rates are the same for all purchasers, whether they are Croatian or foreign.

If the property is sold within three years of purchase, capital gains tax is payable at 35% of its increased value. (This compares, for instance, with Norway where the rate is 28% tax if sold within one year). After three years from the date of purchase, no capital gains tax is payable.

Commission to Skandinavija d.o.o. is 3%.
A fee of 3 to 4% of the purchase price is invoiced by our associated company.


After purchase of property in Croatia

We have established an after-sales department in Croatia which can help you with practicalities after you have purchased your property. Assistance should be agreed well in advance. Fees for assistance are payable in Croatia.


Practical after-sales help

Support with viewings. Contact our affiliates in Sweden or Norway for an appointment. In connection with pre-arranged viewings, the fee (6500 Swedish Kroner / 6000 Norwegian Kroner) is deductible from the purchase price.

If you call in at our Makarska (Croatia) office, charges will be made for viewings outside Makarska itself. Whole day viewings for 1 to 3 persons 950,-Kn. For short viewings 200 Kn. per hour. These charges are arranged locally and are deductible from the purchase price.

We can help you to locate the property you would like. We can offer the professional support of an approved Croatian lawyer in order that the purchase goes smoothly and securely.